Which of the following is a market imperfection that might explain persistent wage differentials within an occupation?
A. Movement of labor from lower-wage to higher-wage jobs.
B. Readily available information about job opportunities and pay.
C. Principal-agent problems.
D. Discrimination.
Answer: D
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Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt is best be considered as
A) still being employed. B) included in the economy's "hidden employment." C) frictionally unemployed. D) cyclically unemployed.
Suppose that Hawaii legalizes casino gambling. By imposing a tax on casino revenues, the state government is able to eliminate the state income tax on wages. What is likely to be the effect on the labor supply curve in Hawaii?
What will be an ideal response?
A purchase of foreign assets by a central bank has the same impact on the monetary base as:
A) an open market purchase of government securities B) an open market sale of government securities C) an increase in the discount rate D) a reduction in the interest on reserves
Informing people of social norms is likely to get:
A. more people to act that way, which is always positive. B. more people to act that way, which can be a problem if policymakers are trying to change typical behavior. C. more people to act that way, which is always negative. D. less people to act that way, because people like to be unique.